CLIENT LOGIN SIGN UP

USDCHF


Trade USDCHF With a Top Rated Broker*

USDCHF picture

Benefits & Risks Trading USDCHF

star icon
Benefits of trading USDCHF
  • The US dollar is the most actively traded currency
  • 1/3 of the world’s privately owned wealth is in Swiss banks
  • Pound movements may help predict fluctuations in the USD/CHF
warning icon
Risks of trading USDCHF
  • Relatively less volatile than other currency pairs
  • Less liquid than the Euro and British Pound
  • In times of crisis, both are considered reserve currencies

About USDCHF

credit card
What is the USDCHF and why trade it?
  • The USDCHF is a currency pair that represents the exchange rate between the US dollar and Swiss franc.
  • It is commonly referred to as the 'swissie', and as of October 2019, it ranks as the fifth most frequently traded currency pair in the forex market.
  • The Swiss franc is often considered a safe haven currency, meaning that it can strengthen during times of economic uncertainty or market volatility.
  • The Swiss franc is the currency of the world's most renowned banking hub, Switzerland. With a significant portion of the world's privately held wealth held in Swiss Banks, the Swiss franc has gained considerable value.
bar chart icon
What drives the USDCHF?

There are many drivers of the currency, including but not limited to:

  • Movements in cross exchange rates, such as EURCHF or GBPCHF, can impact the USD/CHF currency pair.
  • Official statements by Swiss National Bank (SNB) representatives on liquidity, money supply, or the Swiss franc itself may affect the value of the currency.
  • Economic indicators, such as Gross Domestic Product (GDP), inflation rates, and employment reports, from both the United States and Canada.
info icon
When is the most active time to trade the USDCHF?

The largest daily price fluctuations tend to occur during the release of economic data for the Eurozone and Switzerland, as well as during the opening hours of equity, options, and futures exchanges. Most of the data is typically made available between 02:00 and 05:00 Eastern Time (ET), and the half-hour to one-hour period prior to and the three hours following these releases are likely to see the most trading activity.

Moreover, certain economic reports from the United States may be published between 08:30 and 10:00 ET, which can also prompt changes in prices.

info icon
What are the advantages of trading the USDCHF?
  • Due to similar attributes in terms of volatility, price shifts, and technical characteristics, monitoring the development of the British pound can assist in predicting fluctuations in the USDCHF currency pair.
  • Conducting fundamental analysis is relatively easy for the USDCHF currency pair due to the regular and consistent flow of economic data from the United States, Switzerland, and Europe.
  • Although this pair is not as volatile as other currency pairs and lacks the same liquidity as the euro and pound, it remains a relatively uncomplicated trading option.

FAQs

The biggest daily moves often take place when Eurozone and Swiss economic data is released, plus at opening hours for equity, options and futures exchanges.

The Swiss franc is a safe haven currency, meaning in times of global economic stress or high volatility the franc will often appreciate. The Swiss franc and Japanese yen are considered the two most popular safe-haven currency trades.

You can start trading USDCHF on MetaTrader 4 today!